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The Employment Generation Potential of Mature SMEs in Different Geographical Environments

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  • David North

    (Centre for Enterprise and Economic Development Research, Middlesex University, Queensway, Enfield, Middlesex EN3 4SF, UK)

  • David Smallbone

    (Centre for Enterprise and Economic Development Research, Middlesex University, Queensway, Enfield, Middlesex EN3 4SF, UK)

Abstract

Using a longitudinal database, this paper compares the employment performance over the 1979-90 period of mature SMEs in three contrasting geographical environments—i.e. London, outer metropolitan locations in the South East, and remote rural locations in northern England. The performance of SMEs in London locations is shown to be inferior to that of similar firms in remote rural locations, but this is found not to result from them having a weaker performance in output terms. Whilst it is the most rapidly growing firms which have the greatest employment generation potential in all locations, London-based SMEs are more likely to achieve growth in ways which minimise the number of additional workers employed directly by the firm. These urban-rural differences can be explained by the different 'strategies' for business growth adopted by managers in responding to the various opportunities and constraints existing in different geographical environments.

Suggested Citation

  • David North & David Smallbone, 1995. "The Employment Generation Potential of Mature SMEs in Different Geographical Environments," Urban Studies, Urban Studies Journal Limited, vol. 32(9), pages 1517-1536, November.
    • Handle: RePEc:sae:urbstu:v:32:y:1995:i:9:p:1517-1536
    DOI: 10.1080/00420989550012384
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    References listed on IDEAS

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    1. D. J. Storey & S. Johnson, 1987. "Job Generation and Labour Market Change," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-18850-5.
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    Cited by:

    1. Marianna Markantoni & Sierdjan Koster & Dirk Strijker, 2014. "Side-activity entrepreneur: lifestyle or economically oriented?," Chapters, in: Charlie Karlsson & Börje Johansson & Roger R. Stough (ed.), Agglomeration, Clusters and Entrepreneurship, chapter 7, pages 132-156, Edward Elgar Publishing.
    2. Feng Liu & Kwangtae Park & Unjung Whang, 2019. "Organizational Capabilities, Export Growth and Job Creation: An Investigation of Korean SMEs," Sustainability, MDPI, vol. 11(14), pages 1-16, July.
    3. João J. M. Ferreira & Cristina I. Fernandes & Mário L. Raposo & Roy Thurik & João R. Faria, 2016. "Entrepreneur location decisions across industries," International Entrepreneurship and Management Journal, Springer, vol. 12(4), pages 985-1006, December.

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